FxWirePro: Nikkei trades in narrow range, good to buy on dips
The index is trading in narrow range between between 19835 and 20182 for the past four trading session.Nikkei has formed a temporary top around 20319 and any bullish continuation can be seen only above that level. It is …
The index is trading in narrow range between between 19835 and 20182 for the past four trading session.Nikkei has formed a temporary top around 20319 and any bullish continuation can be seen only above that level. It is currently trading around 20117 0.31 higher.
USD/JPY declined slightly after hitting two month high. The pair jumped till 114.49 and is currently trading around 113.50. Intraday trend is still bullish as long as support 113.18 (10- day MA) holds. The near term resistance is around 114.50.and any break above targets 115.50. Minor bearishness can be seen below 111.75 (100- day MA).
On the lower side, index major support is around 19825 (55- day EMA) and any break below will drag the index down till 19617 (89 EMA)/19277 (May 18th 2017 low).
The near term resistance of Nikkei is around 20400 (trend line joining 20230 and 20319) and break above will take the index to 20477 (161.8% retracement of 20019 and 19277) /20530 (161.8% retracement of 20220 and 19744)/20649 (161.8% retracement of 19698 and 18193).
Short term bullish invalidation only below 19275.
It is good to buy on dips around 19900-19950 with SL around 19750 for the TP of 20319/20400.
